The Core Answer: Seniors Pay, But Receive Significant Relief
No Arkansas resident, regardless of age, is automatically exempt from paying property taxes. However, the state offers substantial tax relief through two primary programs: the Homestead Property Tax Credit and the Age 65+ Assessed Value Freeze. These benefits require an application through your local county assessor's office.
Unpacking Arkansas's Key Senior Property Tax Benefits
Understanding these two programs is crucial for maximizing your savings.
The Homestead Property Tax Credit
This credit directly reduces your real estate tax bill. It's available to any qualifying homeowner on their primary residence.
- Who Qualifies? Anyone who owns and occupies a home as their principal place of residence. This includes properties owned by certain trusts or with a recorded life estate.
- How Much Is It? The amount varies, with the Arkansas General Assembly authorizing an increase to up to $500 for the 2025 tax year. The credit cannot result in a refund.
- What Does It Cover? It applies to general ad valorem taxes but not special assessments or personal property taxes.
The Age 65+ Assessed Value Freeze
This program is specifically for seniors (age 65 and older) and people with disabilities. It freezes your property's taxable assessed value, not your tax bill.
- How It Works: Your home's taxable assessed value is frozen at the level of the next assessment date after you turn 65 or become disabled. This prevents increases due to general market value changes.
- Tax Bill Can Still Change: Your taxes can still increase if the local millage rate is raised by taxing districts like cities or school districts, as the freeze only caps the assessed value component of the tax calculation.
- Impact of Improvements: Substantial improvements (adding 25% or more to value) will remove the freeze, reapplying it at the new, higher value.
Comparison of Arkansas Senior Tax Benefits
| Feature | Homestead Property Tax Credit | Age 65+ Assessed Value Freeze |
|---|---|---|
| Beneficiaries | All homeowners, including seniors | Homeowners 65+ or disabled |
| Effect | Reduces your tax bill by a fixed credit amount | Freezes your property's assessed value |
| Tax Bill Impact | Direct reduction to your bill | Capping the value component of your tax calculation |
| Protection From | General real estate taxes | Increases due to general property reappraisals |
| Vulnerable To | Millage rate changes | Millage rate changes; substantial improvements |
| Application | Required; annual notification recommended | Required; once approved, remains active |
The Application Process: A Step-by-Step Guide
Apply with your county assessor's office to receive these benefits.
- Gather Required Documentation: For the Homestead Credit, you need a completed application form from your assessor's office. For the Assessed Value Freeze, provide proof of age (e.g., driver's license, birth certificate) or disability (e.g., Social Security award letter).
- Contact Your County Assessor: Find contact information on the Arkansas Assessment Coordination Division website or your county's site.
- Submit Your Application: Deliver the application and documents to the assessor's office. Check if online submission is available.
- Confirm Your Status: Verify with the assessor's office that your application was received and approved.
Common Misconceptions to Avoid
- The Freeze Doesn't Freeze Taxes: It freezes assessed value, not the tax bill. Your taxes can still increase with millage rate changes.
- The Freeze Is Not Automatic: You must apply for the assessed value freeze; it doesn't happen automatically at age 65 or with disability.
- The Freeze Is Not Permanent (If You Improve): Significant improvements can reset the freeze at a higher value.
The Bottom Line for Arkansas Seniors
Arkansas provides valuable property tax relief for seniors and those with disabilities through the Homestead Credit and the Assessed Value Freeze. Applying for these programs can significantly help manage your property tax burden, especially against rising property values.
Always consult official state and local resources for the most accurate and current information. More details on tax relief can be found on the official website of the Arkansas Department of Finance and Administration.
